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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
26
Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000
2012 Best
Practices Study
Agencies with
Revenues Between
$1,250,000 and
$2,500,000
Average
+25% Profit
+25% Growth
Growth
Organic Growth By Line of Business**
Commercial P&C
0.9%
3.3%
12.2%
Personal P&C
5.9%
12.9%
9.9%
Group Medical
-1.8%
2.4%
26.5%
All Other Group
-4.0%
*
*
Total Organic Growth
1.3%
2.6%
12.1%
Profit
Pro Forma Pretax Profit
25.0%
41.8%
30.4%
Pro Forma EBITDA
27.4%
42.6%
31.4%
Rule of 20 Score
15.8
24.8
27.7
Financial
Current Ratio
1.71:1
3.65:1
Receivable/Payable Ratio
40.2%
-8.6%
Accounts Receivables > 60 Days
15.2%
2.3%
Accounts Receivables > 90 Days
4.7%
-1.2%
Productivity
Average
+25% Profit
+25% Growth
Revenue per Employee
$131,885
$156,771
$124,202
Compensation per Employee
$75,272
$61,104
$62,916
Spread per Employee
$56,613
$95,667
$61,286
Annual New Commission Generated per Validated Producer
Average
Top 25%
Commercial P&C
$51,431
$95,768
Personal P&C
$34,089
$52,453
Life & Health/Financial
$31,261
$57,333
Commissions Serviced per Service & Sales Support Staff
Average
Top 25%
Commercial P&C
$259,363
$374,655
Personal P&C
$189,608
$294,782
Life & Health / Financial
$340,958
*
Key Benchmarks at a Glance
* Insufficient Data
**Excludes any acquired revenue